Montreal-based Quebec Innovative Materials Corp. (QIMC) is poised to transform the clean hydrogen sector by ramping up its efforts to extract natural hydrogen from underground deposits.

As part of this process, QIMC (QIMC-CN) has entered into a strategic collaboration with Ontario's DiagnaMed Holdings Corp. (DMED-CN) to harness a new proprietary electromagnetic heating technology developed at Texas Tech University.

"This technology is the key to unlocking the potential of vast hydrogen deposits that would previously have been difficult to extract," John Karagiannidis, CEO of QIMC, told Sustainable Biz Canada.

"Our collaboration with DiagnaMed gives us access to an innovative new methodology that enables us to drill down and use a special antenna to heat those rock formations close to the surface and achieve the controlled release of hydrogen which we can then collect and harness as renewable energy."

This tech breakthrough replicates the natural geothermal processes occurring in deeper geological layers four to five kilometres below the surface, and allows QIMC to collect hydrogen that would not be released naturally. 

QIMC identifies vast hydrogen field in St-Bruno

The DiagnaMed deal comes on the heels of QIMC's recent discovery of a vast hydrogen field in St-Bruno-de-Guigues, Que. that is now the focal point of its strategic ambitions.

QIMC estimates the market value of this natural hydrogen deposit falls between $4 billion to $13 billion and allows for low-cost extraction via a carbon-free drilling process requiring minimal land use and having a negligible impact on surface ecosystems. 

"We are making significant progress towards developing our St-Bruno field where last month we validated the presence of high concentrations of hydrogen . . . Just as importantly, these hydrogen deposits are essentially pure, with only very minor amounts of carbon dioxide or methane present. 

"The St-Bruno plant will be up and running within three years . . . This advances the sustainable mission of QIMC to establish natural geologic hydrogen as a major future renewable energy source for Quebec," Karagiannidis said.

QIMC has secured land rights to approximately 100 square kilometers in the St-Bruno area, encompassing the entire hydrogen field. The company also plans to carry out additional exploration in Lake Temiskaming, including work on the Ontario side in partnership with Record Resources. 

Road map toward commercialization

For the past several years, QIMC has developed technological and engineering methodology to identify rock formations that are optimal sources of natural hydrogen and allow for extraction plants to be built on site.

On Feb. 12, Karagiannidis and his team met with Quebec's Ministry of Economy, Innovation and Energy where the company outlined its road map for how geologic hydrogen could become a pillar of Quebec’s transition to a low-carbon economy.

"Clean natural hydrogen has the potential to play a critical role in Quebec's energy transition. We're two years ahead of anyone else in the natural hydrogen sector . . . and QIMC is paving the way for this by scaling-up production of geological hydrogen to enable this province to establish an independent, fully renewable energy grid," Karagiannidis added.

St-Bruno is the first step toward QIMC delivering a sustainable, scalable energy solution to help transform Quebec’s energy landscape. The project will also help the province achieve its goal of a 38 per cent reduction in carbon emissions by 2030.

The company is now entering the third phase of its development plan, according to which its projected St-Bruno plant could begin large-scale hydrogen production as early as 2027.

Phase 4 covers engineering and drilling to establish targets for deeper extraction. Phase 5 will involve the extraction and commercialization of natural hydrogen.

Karagiannidis explained the process as follows: "You have magnetic rocks located four to five kilometers underground which act as a natural generator creating pressure to cause hydrogen to flow upwards. We simply drill down and capture this hydrogen."

Natural vs. conventional green hydrogen production

QIMC's vision is to establish a hydrogen hub in Quebec, leveraging its natural hydrogen resources and Quebec's clean energy infrastructure to drive economic growth while supporting the province's net-zero goals.

This is why the company is making a business case for developing and extracting natural, geologic hydrogen as compared to the energy-intensive, conventional method of producing green hydrogen via electrolysis.

Green hydrogen plants often require construction of solar or wind farms to provide the requisite renewable electricity that distinguishes green from grey or blue hydrogen. 

"There's not an infinite amount of gigawatts that could be allocated right now in Quebec to green hydrogen production," Karagiannidis said. "Why would you divert hydroelectric power for a green hydrogen project if you could sell it on the open market and command a higher price?"

The cost of producing natural vs. green hydrogen is also "significantly lower", estimated at around $1 to $5 per kilogram. In contrast, the production of green hydrogen typically ranges from $8 to $10 per kilogram. 

"A single hydrogen well producing 100 kilograms per day delivers the equivalent energy output of approximately 3,500 solar panels. This illustrates the scalability of geologic hydrogen and its viability as a primary energy source."

Making Quebec a leader in the hydrogen Space

QIMC seeks to position the province as a global leader in hydrogen production, fostering economic growth and establishing a vibrant, sustainable energy ecosystem.

Meanwhile, as a result of the DiagnaMed deal, QIMC is working on expanding into the U.S. market where it could deploy the patented electromagnetic extraction technology to full advantage.

"We've been approached by very big players - major companies - and we believe our model for extracting natural hydrogen will become the industry standard . . . It's very important for us to enter the U.S. market now and establish ourselves as a leader in the hydrogen extraction space," Karagiannidis said.